The Nigerian National Petroleum Company Limited (NNPC) has begun moves to secure additional crude oil supply for the Dangote Petroleum Refinery through third-party international traders in a bid to sustain domestic refining operations.
The intervention by the Federal Government comes amid rising fuel prices and supply challenges affecting the downstream petroleum sector.
However, officials say the move may not immediately translate into lower petrol prices for consumers, as Nigerians continue to grapple with rising fuel costs following recent price adjustments by the Lekki-based refinery.
Industry players and oil marketers confirmed that the refinery recently temporarily suspended the loading of Premium Motor Spirit (PMS), commonly known as petrol. The development has sparked speculation about another possible price increase.
If implemented, it would mark the third surge in petrol prices within a week, after gantry prices climbed sharply from N774 to N995 per litre.
As a result, retail pump prices in several states have already crossed the N1,000 per litre mark, with some filling stations reportedly selling petrol at about N1,200 per litre, increasing economic pressure on households and businesses.
Market data also highlights a shift in Nigeria’s crude sourcing pattern. According to analytics firm Kpler, Nigeria’s crude imports from the United States rose significantly to 41.13 million barrels in 2025, representing a 161 per cent increase from 15.79 million barrels recorded in 2024.
Motorists and industry observers are now bracing for the broader economic impact, as higher fuel prices typically lead to increases in transport fares and the cost of goods and services.
Analysts say stabilising fuel prices depends largely on reliable crude allocation to domestic refineries, especially as global oil market volatility continues to disrupt supply chains.
One of the key factors affecting the market is the geopolitical crisis in the Middle East, particularly tensions involving Iran and the United States. The conflict has disrupted global oil supply routes and pushed Brent crude prices above $92 per barrel.
The situation has also heightened concerns around the Strait of Hormuz, a critical global energy transit corridor through which a significant portion of the world’s oil shipments passes.
Multiple industry sources confirmed that NNPC is leveraging its global crude trading network to source third-party supply for the Dangote refinery at competitive international market rates.
“Leveraging our global crude trading network, we are sourcing third-party crude for the refinery at prices that are competitive with prevailing international market rates,” a senior NNPC official said.
The official added that the national oil company remains committed to supporting domestic refining capacity.
“As the national oil company entrusted with safeguarding Nigeria’s energy security, NNPC Limited remains fully committed to supporting domestic refining, including the Dangote Petroleum Refinery,” the source stated.
Meanwhile, the refinery has cautioned that sourcing crude internationally may not immediately lower petrol prices, as global energy costs remain elevated due to geopolitical tensions.
According to a refinery source, the ongoing Middle East crisis is affecting the global pricing of crude oil, LNG, and other fuels, with implications for refined petroleum product prices worldwide.
The refinery also pointed to constraints in domestic crude supply, noting that it receives about five cargoes per month from NNPC, significantly below the 13 cargoes required under the naira-for-crude policy.
As a result, the refinery has increasingly relied on imported crude purchased at international market rates, which further influences the pricing of refined petroleum products in Nigeria.
